Identifier
Created
Classification
Origin
06ABUDHABI3872
2006-10-04 08:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:  

DRAFT UAE-U.S. "GAP ANALYSIS" OF CASH COURIER REGULATIONS

Tags:  PTER KTFN AE 
pdf how-to read a cable
VZCZCXRO9162
RR RUEHDE
DE RUEHAD #3872/01 2770840
ZNR UUUUU ZZH
R 040840Z OCT 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 7218
INFO RHEHNSC/NSC WASHDC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
UNCLAS SECTION 01 OF 03 ABU DHABI 003872 

SIPDIS

DEPT FOR NEA/ARP, EB/ESC/TFS
TREASURY FOR A/S O'BRIEN, PHEFFERNAN, ACURTIS
DHS FOR DHS/ICE, FINANCIAL AND TRADE INVESTIGATIONS
NSC FOR JZARATE

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PTER KTFN AE
SUBJECT: DRAFT UAE-U.S. "GAP ANALYSIS" OF CASH COURIER REGULATIONS

Refs: A) Abu Dhabi 3818, B) Abu Dhabi 2421, C) 2003 Abu Dhabi 2211

UNCLAS SECTION 01 OF 03 ABU DHABI 003872

SIPDIS

DEPT FOR NEA/ARP, EB/ESC/TFS
TREASURY FOR A/S O'BRIEN, PHEFFERNAN, ACURTIS
DHS FOR DHS/ICE, FINANCIAL AND TRADE INVESTIGATIONS
NSC FOR JZARATE

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PTER KTFN AE
SUBJECT: DRAFT UAE-U.S. "GAP ANALYSIS" OF CASH COURIER REGULATIONS

Refs: A) Abu Dhabi 3818, B) Abu Dhabi 2421, C) 2003 Abu Dhabi 2211


1. (U) In response to the Central Bank Governor's request at the
September 12 JTFCC for a "gap analysis" of the U.S. and UAE cash
reporting regulations and procedures, Embassy/CG interagency team
(State/Econ, Treasury/OFAC, DHS/ICE) prepared the following draft
and passed to the UAE Central Bank for comment on September 26. The
initial response from the Central Bank was positive, with no
comments. We are trying to clarify whether Central Bank officials
have passed the analysis to the Governor. In conducting the
analysis, we noted two gaps between our respective regulations: One,
UAE regulations do not provide for cash declarations departing the
country; two, UAE regulations only cover cash and travelers checks,
not all bearer negotiable monetary instruments. Central Bank
officials noted that the UAE does not have the broad range of
negotiable monetary instruments that the U.S. does.

Begin Text of Gap Analysis and Best Practices
U.S. - UAE Cash Courier Gap Analysis of Regulations
-------------- --------------

U.S. Law and Regulations (PL 97-258, 31 USC 5311, et sec as
amended)
-------------- --------------

-- Import and export of any amount of currency permitted.
-- Must declare currency and monetary instruments transported in and
out of U.S. in excess of $10,000 or foreign equivalent.

UAE Law and Regulations (Under Provisions of Federal Law No. (4) of
2002)
-------------- --------------

-- Import and export of any amount of currency permitted.
-- 40,000 Dirham's (or equivalent) must be declared on importation.
(cash and travelers checks)
-- No requirement to declare on export

Gaps in Regulations
--------------

-- Current regulations do not require travelers to declare currency
or monetary instruments on departure from UAE.
-- UAE regulations cover cash and travelers checks. U.S.
regulations cover bearer negotiable instruments (for example: cash,
travelers checks, bearer bonds, 3rd party endorsed checks, etc.)

Implementation
--------------

-- It is premature to provide an assessment of potential gaps in

implementation of cash courier regulations prior to engaging in the
proposed cash courier operation.

Best Practices Per FATF Special Recommendation Number IX
-------------- --------------

-- Countries should develop effective and feasible procedures to
detect, stop, restrain, and where appropriate, confiscate such
currency and bearer negotiable instruments. Countries are encouraged
to coordinate these operations with all relevant law enforcement
authorities.

-- Countries are encouraged to base targeting efforts upon
intelligence and analysis together with risk and threat assessments.
Authorities must first identify travel routes, flights, ships and
concealment methods that are considered high-risk because of known
or possible links to terrorist financing or other illicit finance
movement.

-- Most inspections, detections and seizures result from an initial
"document review" process.

-- Analysis of identification and travel documentation includes the
following: passport, visa, airline/cruise ticket, and declaration or
suspicious disclosure documentation. For cargo examinations, ensure
that some or all of the following shipping documents are made
available for review: manifest, airway bill, shipper's export
declaration and invoice/packing list.

-- When a false declaration or false disclosure occurs, or when
there are reasonable grounds for suspicion of money laundering or
terrorist financing, and if a person is unable to demonstrate the
legitimate origin and destination of the currency or bearer

ABU DHABI 00003872 002 OF 003


negotiable instruments, those funds may be stopped or restrained.
Countries may consider confiscation of currency or bearer negotiable
instruments without criminal conviction in a manner consistent with
FATF Recommendation 3.

-- Countries should consider establishing procedures to conduct
thorough inspections of passengers, vehicles, cargo, etc. when it is
suspected that currency and bearer negotiable instruments may be
falsely declared or undisclosed or that it may be related to
terrorist financing or money laundering. If possible, inspections
should be conducted by a minimum of two individuals. As stated
earlier, the use of X-ray equipment, scanners and canine units that
are specially trained to sniff out currency should also be used to
the maximum extent possible.

-- Customs authorities and other enforcement agencies are encouraged
to work with prosecutorial or judicial authorities to establish
guidelines for the stopping or restraining of currency and bearer
negotiable instruments, and the arrest and prosecution of
individuals in cases involving falsely declared or disclosed
currency and bearer negotiable instruments, or where there are
suspicions that the currency or bearer negotiable instruments are
related to terrorist financing or money laundering.

-- These guidelines should also address individuals who fail to
truthfully answer questions posed by customs officers or fail to
co-operate with the authorities in the inspection process.

-- Countries are encouraged to have co-operation arrangements with
other countries which would allow for bilateral customs information
exchanges between customs and other relevant agencies on
cross-border reports, the stopping or restraining of cash and bearer
negotiable instrument, and red flag indicators. This co-operation
could also extend to operations involving controlled deliveries and
other investigative techniques when unaccompanied cash and bearer
negotiable instruments are detected at the border.

-- Countries are also encouraged to enhance domestic law enforcement
co-operation between customs, immigration and the police to respond
to detections of currency and bearer negotiable instruments, and to
develop intelligence. FIUs also have a useful role to play in the
dissemination of this type of information domestically.

Currency Reporting Requirements Per Customs and Border Protection
Official Web Site
-------------- --------------

It is legal to transport any amount of currency or other monetary
instruments into or out of the United States. However, if you
transport, attempt to transport, or cause to be transported currency
or other monetary instruments in an aggregate amount exceeding
$10,000 (or its foreign equivalent) at one time from the United
States to any foreign place, or into the United States from any
foreign place, you must file a report with U.S. Customs and Border
Protection (CBP). This report is called the Report of International
Transportation of Currency or Monetary Instruments, FinCEN Form 105
(http://www.fincen.gov/forms/fin105_cmir.pdf) . These forms can be
obtained at all U.S. ports of entry and departure. You may continue
to use a Customs Form 4790, the predecessor of FinCEN Form 105, to
file the report until such forms are exhausted.

In addition to the above requirement, if you as an individual or on
behalf of an entity recognized as legal personalities (i.e. a
company, corporation, partnership, etc.) sends, mails or ships
monetary instruments to the United States from a foreign country
valued at $10,000 or more, you are required to file a report with
CBP before sending the monetary instruments to the recipient in the
foreign country or in the United States. If you or a legal
personality you are affiliated with in the United States receives
monetary instruments valued at $10,000 or more, sent via mail, ship,
or express courier, you are also required to report to CBP. You are
required to file the report within 15 days upon receipt of the
monetary instruments.

The completed form should be sent to the following address:

Commissioner of U.S. Customs and Border Protection
Attention: Currency Transportation Reports
Washington, DC 20229

Monetary instruments include: 1) U.S. or foreign coins and currency;
2) traveler checks in any form; 3) negotiable instruments (including
checks, promissory notes, and money orders) that are either in
bearer form, endorsed without restriction, made out to a fictitious

ABU DHABI 00003872 003 OF 003


payee, or otherwise in such form that title thereto passes upon
delivery; 4) incomplete instruments (including checks, promissory
notes, and money orders) signed, but with they payee's name omitted;
and 5) securities or stock in bearer form or otherwise in such form
that title thereto passes upon delivery. However, the term
"monetary instruments" does not include: 1) checks or money orders
made payable to the order of a named person which have not been
endorsed or which bear restrictive endorsements; 2) warehouse
receipts; or 3) bills of lading.

Currency reporting is required under the Currency and Foreign
Transaction Reporting Act (PL 97-258, 31 U.S.C. 5311, et seq.),as
amended. Failure to comply can result in civil and criminal
penalties and may lead to forfeiture of your monetary
instrument(s).


Sison